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The Dutch District Court ruled out all National Bank’s duties on the crypto platforms by stating that these are unlawful and do not comply with the latest AML measures amended by the EU.
The District of Rotterdam has ordered that the duties imposed by the Dutch National Bank (DNB) on the crypto service providers are illegal, and virtual assets platforms did not have to uphold these. The case was registered in 2021 when the DNB expanded its measures to registered crypto service providers under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act. The court ruled that the rigid measures on the risk assessment procedures for the crypto service providers did not align with the latest Anti-Money-Laundering Directives (AMLD), which was amended by the EU regulatory authorities. They also stated that the DNB has no rights to update the legal framework for crypto services.
The technology regulation expert at Pinsent Masons, Wouter Seinen, the ruling disclosed insights into the legal obligations and cost burdens on crypto service providers and highlighted the importance of compliance with the EU legislation. He stated, “now, serious parties in the cryptocurrency ecosystem will no longer struggle with a lack of legal certainty and an increasing cost of compliance. This judgment will be deeply encouraging for those operators who are working towards a properly regulated NFT and crypto market.” This ruling has been seen as a significant step forward in regulating cryptocurrencies and digital assets and signals a positive shift in attitude towards the industry. The court order is also expected to foster innovation and provide clarity for investors and operators. Seinen added, “with the Market in Crypto-Assets Regulation (MICAR) on the horizon, which aims to address the fragmentation of the legal framework applicable to crypto assets, it was remarkable that regulators expected the emerging market to pick up the bill of developing the required supervision best practices for crypto.”
This ruling shows a straight path for the crypto assets platforms to proliferate in the EU, complying with the legal framework. This ruling also signals the EU’s intention to create a more convenient legal system for the crypto assets markets. It is an essential step in creating a more stable and secure environment for crypto asset investors. The fintech expert at Pinsent Masons, Luke Scanlon, mentioned that this ruling might be a close overview of the UK’s intentions to evolve cryptocurrency and combat money laundering through regulating virtual assets. Scanlon stated, “over a number of years now there has been convergence in the approach taken towards financial crime levying arrangements. This issue of levies was a sticking point, however, with questions raised over how to promote innovation and fairness across financial and crypto markets.”
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